Price trend

In 2022, the dichloromethane market declined significantly. According to the monitoring of SunSirs, the market price of dichloromethane in Shandong Province as of December 15 was 2,427 RMB/ton, a decrease of 59.36% compared with the price of 5,972 RMB/ton at the beginning of the year.

Specifically, the market trend of dichloromethane in 2022 mainly presents four stages.

Phase I: January to April, wide amplitude shock period

During the cycle, the high point was 5,972 RMB/ton on January 1, and the low point was 4,297 RMB/ton on March 3, with an amplitude of 28.05%. First of all, the downstream demand of the two stages was weak due to the end of goods preparation before the Spring Festival in January, and the impact of COVID-19's multi-point distribution logistics and commencement in April. Secondly, under the conflict between Russia and Ukraine, the energy price rose, the price of raw material methanol reached a high in March, and the cost of dichloromethane rose. Finally, at the beginning of the year, Dongyue 100,000 t/a plants were put into operation and Fuqiang 300,000 t/a methane chloride restarted in April. The supply of dichloromethane was loose and the price was under pressure. Under the comprehensive influence, the market price of dichloromethane fluctuated widely from January to April.

Phase II: May~July, sharp decline period

According to the monitoring of SunSirs, the price on July 31 was 2,802 RMB/ton, down 40.21% from 4,687 RMB/ton at the beginning of May. On the one hand, in May, the operating rate of domestic methane chloride plants was at a high level of 80% to 90%. In addition, Dongying Huatai's 160,000t/a new methane chloride plant was planned to be put into operation, which put a great pressure on domestic supply. On the other hand, the price of raw methanol fell from 2,850 RMB/ton on June 14 to 2,315 RMB/ton on July 16, a drop of 18.77%. The cost of dichloromethane had declined. In addition, there was no obvious increase in downstream demand from May to July, and the support for dichloromethane was weak. The negative factors on supply and demand and cost dragged the price of dichloromethane down sharply.

Phase Ⅲ:August to September, shock rebound period

According to the monitoring of SunSirs, the price on September 30 was 3,160 RMB/ton, up 11.37% from the price of 2,837 RMB/ton at the beginning of August, and the peak in the cycle was 3,370 RMB/ton. This round of rebound was supported by the rise in raw material prices and slightly better demand. According to the monitoring of SunSirs, the price of raw methanol rose from 2,315 RMB/ton at the beginning of August to 3,012 RMB/ton at the end of September, an increase of 30.13%, and the cost of dichloromethane rose significantly. In addition, in high temperature weather, the downstream refrigerant had rigid support, and the demand for dichloromethane was slightly better, which had certain support for dichloromethane market too.

Phase Ⅳ: October to the end of the year, another downward period

According to the monitoring of SunSirs, the price of dichloromethane was 2,427 RMB/ton on December 13, down 23.18% from the price of 3,160 RMB/ton at the beginning of October. On the one hand, the weather turned cold in the four seasons, and the refrigerant delivery volume and operating rate declined; On the other hand, in the fourth quarter, Omikjon was strongly spread, and the closure management, logistics and commencement of construction were affected for a period of time; Finally, the international energy market fell, the price of methanol fell slightly, and the cost of dichloromethane fell slightly. The demand side was weak, the cost side was slightly lower, and the pressure on supply side was still there. The three pronged approach led to the overall decline of the dichloromethane market in the fourth quarter.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.